A New Frontier For Business, Investment

Dayana Jones

Matthew R. Meehan is a leading finance expert and CEO of Shield Advisory Group. He specializes in helping SMEs access credit and capital.

Remember when Facebook CEO Mark Zuckerberg announced in October his vision for the future of his company with a focus on the metaverse? He went so far as to rebrand his company as Meta.

Even though the concept of the metaverse has been around since the early ’90s (first mentioned in a sci-fi novel), it’s only just now enjoying this level of widespread notoriety. It even made the Collins Dictionary Word of the Year shortlist for 2021—that’s how popular it has become in our everyday vernacular.

But if you’re still wondering what the metaverse is and, more importantly, why you should care about it, keep reading.

First Things First: What Is The Metaverse?

Short answer: A virtual reality. Basically, it’s a place where our physical and digital worlds come together. Using avatars—or digital representations of themselves—people can interact with others and enjoy activities such as shopping and attending concerts in a digitally created universe. Cool, right?

But it goes beyond hanging out in a virtual playground. The metaverse provides you an opportunity to acquire assets, create products and accumulate real-world wealth.

The metaverse is quite literally a network of untapped potential, which opens a whole new (pardon the pun) world of opportunity. Users are the explorers of the 21st century, discovering new lands for themselves and future generations.

How Might You Benefit From The Metaverse?

There are countless ways you and your business could potentially benefit from the metaverse. Here are three to get you started.

1. Offer a product or service: Like in the real world, consumers control the demand, and within the metaverse, that demand ranges from manufacturing and real estate to clothing and entertainment. People are willing to pay for virtual possessions and experiences. For example:

• Architects are helping others build virtual buildings. In fact, one firm charges $10,000 to $300,000 per project.

• Creators are using voxels (essentially three-dimensional building blocks) to create things such as virtual clothing and cars, which can be sold to and used by others in their virtual realm.

• Travis Scott garnered a record for the highest attended concert in history when he performed within the Fortnite metaverse in April 2020 to a crowd of 12.3 million.

If you can do it in real life, you can (probably) do it in the metaverse. And even if you don’t know how to create or produce, you can still buy and sell like with real-world commodities.

2. Advertise: The metaverse offers a whole new landscape of advertising opportunities. You can purchase virtual real estate and charge to display third-party ads or use the space to promote your own real-world business. You can tap into virtual reality billboards or use product placements in virtual reality (VR) games. Metaverse advertising is still relatively new, so it’s not without its kinks. But being one of the first to the space has its advantages, and some brands expect to reap the rewards with a long-term strategy in place.

3. Invest in it: Perhaps the most straightforward way to benefit from the metaverse (without needing to understand all the idiosyncrasies of voxels and blockchain) is to invest in companies and stocks that are already capitalizing on this new technology.

Proceed With Caution

Like any investment opportunity, it doesn’t come without risks. And considering that the metaverse is still an evolving concept, those risks may be substantial, so it’s recommended to only invest capital you’re prepared to lose.

Right now, the metaverse is the shiny new toy everyone is rushing to play with, but for how long? Is it sustainable? Some call it “a bubble” ready to pop. Others call it a “speculation market.” And if that market booms or pops, what then? When you invest in real-world real estate, for example, and the market crashes, at least your property remains intact. It may hold less value, but it still exists. If your metaverse real estate investment flops, it could disappear.

Another factor to consider is the internet comes with a whole host of privacy, safety and security challenges. Enter the metaverse, and it’s likely those will become even bigger issues—leaving you and your digital assets more exposed. Investors must carefully consider the risks before deciding whether to participate in this new frontier.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.


Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?


https://www.forbes.com/sites/forbesfinancecouncil/2022/03/08/the-metaverse-a-new-frontier-for-business-investment/

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